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Edwards Lifesciences (EW) Plans Strong Long-Term TAVR Growth

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Edwards Lifesciences Corporation EW recently provided an update on its longer-term growth (till 2024) plans as well as strategy and technology pipeline atthe annual investor conference in New York City. It also issued its 2020 financial guidance.

A Sneak Peek Into the Matter

The company at the outset has reaffirmed its 2019 financial guidance, which is as follows:

Adjusted earnings per share are expected in the range of $5.50-$5.65. Total revenues are projected to be around the upper end of the $4-$4.3 billion band stated previously.

For 2020, the company predictsglobal sales in the bracket of $4.5-$5 billion indicating underlying growth of 10-12%, which excludes currency fluctuations, sales return reserves associated with product upgrades and the conversion to a consignment inventory system for surgical structural heart. However, the same includes the sales results of CASMED prior to its acquisition in the second quarter of 2019.

Adjusted EPS for 2020 is pegged in the range of $6.05-$6.30.

Within TAVR (Transcatheter Aortic Valve Replacement), the company envisions 2020 sales of $2.9-3.2 billion (representing expected underlying growth of 12-15%). Within Surgical Structural Heart, sales are estimated in the range of $820-860 million (0-3%). Critical Care sales are assumed within $780-820 million (6-9%). In TMTT (Transcatheter Mitral and Tricuspid Therapies), 2020 sales are forecast within $50-70 million. The company projects nearly $40 million of unfavorable foreign exchange impact on its full-year sales.

Overall, Edwards is highly optimistic about its upcoming year’s performance and projects another year of double-digit top- and bottom-line growth. The company once again hopes to aggressively pursue breakthrough therapies in the field of structural heart diseases.

Long-Term Growth Outlook

Within TAVR, the company expects global TAVR opportunity to reach more than $7 billion by 2024. This uptrend will be maintained even beyond 2024, fueled by broader indications, greater disease and therapy awareness plus advances in the technology. 

Within TMTT, the global scope is estimated to touch $3 billion within 2024 followed by a significantly larger longer-term opportunity.

Global transcatheter valve therapy prospects are likely to achieve more than $10 billion by 2024.

WithinSurgical Structural Heart, the company eyes a regulatory approval in Europe for the HARPOON echo-guided beating-heart system by this year-end. It also expects to launch the KONECT RESILIA system, comprising the first and the only ready-to-implant tissue valve conduit, in 2020, and the SUTRAFIX automated fastening system in late 2020.

Within Critical Care, Edwards is currently integrating a complete suite of technologies on the HemoSphere monitoring platform to strengthen its position in smart monitoring. The company anticipates the launch of the ClearSight system on HemoSphere in 2020.

Share Price Performance

In the past three months, shares of Edwards have outperformed its industry. The stock has gained 9.5% compared with the 8.3% rise of the industry.

Zacks Rank & Other Stocks Worth a Look

Edwards currently carries a Zacks Rank #2 (Buy). A few other top-rankedstocks from the broader medical space are Haemonetics Corporation HAE, NuVasive, Inc NUVA and ResMed RMD. While ResMed sports a Zacks Rank #1 (Strong Buy), the other two carry the same Zacks Rank as Edwards. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics has a long-term earnings growth rate projection of 13.5%.

NuVasive has an expected long-term earnings growth rate of 10.9%.

ResMed has a long-term earnings growth rate of 12.9%.

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